Government through the Greenbelt Authority has terminated its Salima Sugar Company Limited shareholding agreement with AUM Sugar and Allied Limited due to breach of contract.
According to communication signed by Greenbelt Authority chief executive officer, Dudley Chidzungu,, the agreement has been breached as revealed by results of the recent forensic audit conducted at the institution.
Chidzungu indicates that the termination, which is in accordance to section 12 (3) of the shareholders agreement, was decided at a meeting held on 6 December in Lilongwe.
Reads part of the letter: “The shareholding agreement has been breached as per results of the Forensic Audit Report which has revealed that despite not paying in time your equity contribution you have also been defrauding the company by raising equity using company resources.”
Source:NPL
